Godstone leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Godstone will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Godstone with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Godstone can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Godstone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the landlord of her basement apartment in Godstone, Amber commenced the lease extension process as the eighty year threshold was fast nearing. The lease extension was finalised in October 2005. The freeholder’s fees were kept to an absolute minimum.
Last month we were e-mailed by Mr Y Fournier , who acquired a studio flat in Godstone in July 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Godstone with a long lease were worth £225,800. The average amount of ground rent was £60 billed every twelve months. The lease expired on 17 September 2085. Given that there were 60 years left we approximated the compensation to the landlord to extend the lease to be within £25,700 and £29,600 plus expenses.
An example of a Freehold Enfranchisement decision for a Godstone premises is 223 Brighton Road in September 2013. The premium payable for the acquisition freehold of the properties should be £10,934 (Ten thousand,nine hundred and thirty four pounds) This case related to 3 flats. The number of years remaining on the existing lease(s) was 75 years.